WorksheetsIntro to Finance Test #6
Total questions: 19
Worksheet time: 13mins
What is overvaluation?
the reason why people buy stocks
when people believe that something costs less than it actually does
a bar that is set too high where people cannot reach it
when something costs more than it actually should
What allows peoples to calculate the value ratios for the entire index and compare them over time?
index value ratio
P/E ratio
P/BV ratio
NAV
What is the easiest and most common way to outsource your investment decision?
The Economist
Mutual Funds
REITs
NYSE
Name one thing you need to consider before you invest:
(a)
What is discretionary income?
income that you use for daily expenses (food, rent, transportation)
money that you've held onto since you were a baby
money that you've been collecting in secret
income that you are spending outside of necessary, living expenses
What are the two most common techniques for researching stocks?
financial analysis
technical analysis
historical analysis
profit analysis
fundamental analysis
What is another name for technical analysis?
stock volume
fundamental analysis
empirical analysis
valuation ratio
Which option is a weakness of technical analysis?
stock price and trading volume
the future
profitability
debt levels and growth rates
True or False: Fundamental analysis is the foundation to any sort of quality research and analysis of stocks.
(a)
What are value ratios?
how much each bond costs
dividend/yield
what you have to pay for the stock divided by what you're going to get in return
cash flow, profitability, valuation ratios, debt levels, and growth rates
What do valuation techniques allow you to do?
to create stocks
to use ratios
to determine which stock is the best to choose by comparing CEOs
to derive a specific number for the price of stock
Which of these examples are NOT a valuation technique?
Discounted Cash Flow
Industrial Comparisons
Market Inference Pricing
Asset Reconstruction
Name a type of ratio:
(a)
What are ROA ratios?
Return on Assets
Remote Off Account
Radial of Arcs
Refund on Assets
Fill in the blank: Sovereign Risk equals (a) risk.
Which option is an advantage of investor relations?
they can connect you with the CEO of their company
they can answer very specific questions quickly
they are very fast with ending their calls
there is no advantage
Name an example of a good research website:
(a)
Name a publication that is relatively unbiased:
(a)
Where can we go to access websites like Morningstar (cost $56 to use per month) for free?
your house
a brokerage
a bank
a public library
